Brenda Barnes, CPA
As we all know, Legal Malpractice Insurance is a necessity…one of those things you hate to pay for, but appreciate the peace of mind it provides. But how often are you taking a look at your current policy in connection with the current legal environment? And how often do you think about the possibility of a conflict with a client as you enter into that relationship? It is important to remember that difficult clients often end up being difficult claimants.
Some interesting statistics from Travelers Insurance Legal Division:
For the measurement period 2012 to 2016, claims against lawyers were down 18%.
Top 5 Areas of Practice by Claim were:
43% of claims had 0 dollars paid.
5% of claims paid out over $250,000.
Top 10 Claims by type of alleged error:
- Procrastination in performance of services
- Planning error in choices of procedure
- Inadequate investigation or discovery of facts
- Fraud
- Failure to know or properly apply law in area
- Failure to follow client’s instructions
- Failure to document or to file timely
- Calendar/deadline errors
- Conflict of interest
- Other
How can you steer clear of trouble? Watch out for clients with unrealistic expectations or are high net worth individuals who perceive themselves to be “educated” and who have a proven track record of disputes with prior counsel. Also be careful hiring mobile lawyers as they often don’t just bring a book of business.
B2 Risk Advisors understands the legal industry and how to help clients implement preventative measures to minimize their exposures. We have over 35 years of experience working with insurance carriers, underwriters and claims adjusters. We understand your business and provide a total solution for your needs.
The business of your practice just got easier! Call B2 to see how.